690 Credit Score: Is It Good or Bad?

A 690 credit score puts you in the "good" credit range, but it may not unlock the best rates and terms available to borrowers. With the average American credit score sitting at 715 as of 2024, according to FICO®, a 690 score falls 25 points below the national average.^[1]

Understanding how a 690 credit score impacts your finances can help you make informed decisions about credit cards, loans, and other financial products. In this article, we’ll discuss what a 690 credit score means and how it can impact your ability to be approved for different types of credit.

Is a 690 credit score good?

Yes, a credit score of 690 falls within the "Good" range (670-739) on the FICO® credit scoring model. As of Q3 2024, 21% of U.S. consumers have a credit score in the Good range.^[1]

FICO credit score ranges are as follows:

• Exceptional: 800-850
• Very Good: 740-799
• Good: 670-739
• Fair: 580-669
• Poor: 300-579

Because a 690 credit score falls into the Good credit score range, you may qualify for a wide range of financial products, including mortgages, loans, and credit cards.

The table below shows the number of U.S. consumers that fall into each credit score range, according to Experian data from Q3 of 2024.

Source ^[1]

What can I get with a 690 credit score?

Though a 690 credit score is in the good range, the actual credit score needed to qualify for different types of credit products can vary.

Is 690 a good credit score to buy a house?

A 690 credit score can help you qualify for most mortgage programs, though you may not receive the lowest available rates. Bear in mind that your credit score alone will not qualify you, and lenders also look into other factors like your debt-to-income ratio, the size of your down payment, and the loan type you’re applying for. Here's what you need to know about different loan types:^[2]

• Conventional loans - Most conventional mortgage lenders require a minimum credit score of 620, so your 690 score comfortably exceeds this threshold. However, some conventional loan lenders might require a score of 660 or higher.
• Jumbo loans - These loans for high-value properties often require credit scores of 700 or higher, meaning a 690 score may not qualify for jumbo financing.

Government-backed home loans

• FHA loans: With minimum scores as low as 500-580, a 690 score puts you well above minimum scoring requirements
• VA loans: Most lenders prefer scores of 620 or higher, making you a strong candidate
• USDA loans: Typically require scores of 580 or higher, so you'll likely qualify from a score perspective

Source ^[2]

Buying a car with a 690 credit score

Auto lenders typically categorize a 690 credit score in their "prime" lending tier, which should qualify you for competitive rates, though not necessarily the best available. The amount of interest you pay on a car loan can be influenced by your credit score, and people with lower credit scores will typically pay more interest than people with higher credit scores.^[3]

Based on recent Experian data from Q4 2024, borrowers in the prime credit tier (661-780 on the VantageScore 4.0 model) receive average rates of:

• New car loans: 6.40% APR
• Used car loans: 9.95% APR

For comparison, borrowers with super prime credit (781+) receive average rates of:

• New car loans: 4.77% APR
• Used car loans: 7.67% APR

This difference can add up significantly over the life of a loan. On a $30,000 five-year auto loan, the difference between a 6.40% rate and a 4.77% rate amounts to approximately $1,356 in additional interest costs. If you can build your credit score up, you could save yourself a lot of money in interest on car loans.^[4]

Be aware that not all auto lenders use the VantageScore credit scoring model when making lending decisions. Though the VantageScore scale is similar to FICO, the factors used in the scoring models are slightly different, so it’s important to understand which scoring model is being used when you apply for financing.^[5]

The table below shows the breakdown of average auto loan interest rates and payments by credit score from Experian data as of Q4 2024. The data shows that people with a credit score of 300 to 500 typically pay the highest interest rates on auto loans, while those with scores of 781 or above usually pay the lowest interest rates.

Data from Experian as of Q4 2024, based on VantageScore 4.0.
Source ^[3]

Getting a credit card with a 690 credit score

Credit card issuers could approve you for many cards with a 690 score, including some with attractive features. However, you may not qualify for premium cards with the most generous rewards or exclusive perks.

Cards you may qualify for:

• Some rewards and cashback cards
• Cards with moderate annual fees
• Student credit cards
  These could come with a lower credit limit and higher interest rates.

Cards that may be challenging:

• Premium travel cards, which keep in mind may come with high annual fees
• Cards with cashback and rewards towards flights

Credit card companies often reserve their best offers for applicants with very good or exceptional credit scores, meaning some opportunities may remain out of reach until you build your score. ^[5]

What can you borrow with a 690 credit score?

Your borrowing capacity depends on multiple factors beyond your credit score, including income, debt-to-income ratio, down payment, and the specific lender's requirements. However, a 690 score should qualify you from a scoring perspective for:

• Mortgages: Most loan programs, though rates may be higher than for borrowers with very good credit
• Auto loans: Competitive rates from most lenders
• Personal loans: Access to many products, though rates vary significantly by lender
• Credit cards: Many options, though premium cards may require higher scores

The key is shopping around with multiple lenders and seeing what’s available, as each has different underwriting criteria and risk tolerances.^[6]

Building credit with a 690 credit score

Moving your score from 690 to the very good or exceptional ranges (740+) can unlock better rates and terms. Here are some strategies you could try:

• Focus on payment history - Since payment history accounts for 35% of your FICO score, ensuring all bills are paid on time is crucial.^[7]
• Optimize credit utilization - Some credit experts recommend keeping your credit utilization ratio below 30%, so if you have $10,000 in total credit limits, try to keep balances below $3,000 across all cards. However, the lower your credit utilization is, the better, and there is no set figure when you’ll start to see negative impacts on your credit.
• Address credit report errors - Review your reports from all three bureaus and dispute any inaccuracies you find.
• Consider becoming an authorized user - If someone with excellent credit adds you as an authorized user, their positive payment history may boost your score, though this strategy works best by asking with someone who has a long history of responsible credit use.
• Be strategic about new credit - Each hard inquiry can temporarily lower your score by a few points. Space out credit applications and only apply when necessary.^[8]

Bottom line

A credit score of 690 falls in the Good FICO score range, meaning you should be able to qualify for a wide range of credit products like loans and credit cards. However, if you have a 690 credit score, there is plenty of room to build your score and access credit products that are typically reserved for consumers with Very Good or Exceptional scores.

Sources

1. Experian, “What is the Average Credit Score in the U.S.” https://www.experian.com/blogs/ask-experian/what-is-the-average-credit-score-in-the-u-s/
2. Experian, “What Credit Score Do I Need to Buy a House” https://www.experian.com/blogs/ask-experian/what-credit-score-do-i-need-to-buy-a-house/
3. Experian, “Auto Loan Rates and Financing” https://www.experian.com/blogs/ask-experian/auto-loan-rates-financing/
4. Experian, “Car Payment Calculator” https://www.experian.com/blogs/ask-experian/car-payment-calculator/
5. Chase, “What Credit Score Do You Need for a Credit Card?” https://www.chase.com/personal/credit-cards/education/build-credit/what-credit-score-is-needed-for-a-credit-card
6. Experian, “What is a Good Credit Score?” https://www.experian.com/blogs/ask-experian/credit-education/score-basics/what-is-a-good-credit-score/
7. MyFICO, “How Are FICO Scores Calculated?” https://www.myfico.com/credit-education/whats-in-your-credit-score
8. MyFICO, “What Are Credit Inquiries?” https://www.myfico.com/credit-education/credit-reports/credit-checks-and-inquiries

About the author

Becca has over 10 years of experience as a content writer, working across various industries including finance, digital marketing, education, travel, and technology. Her work has been featured in publications including Forbes, Business Insider, AOL, Yahoo, GOBankingRates, and more.

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